Use the Information for the Question(s)below

question 31

Multiple Choice

Use the information for the question(s) below.
Fly by Night Aviation (FBNA) expects to have net income next year of $24 million and interest expense of $3 million.FBNA's corporate tax rate is 21%.
-IF FBNA increases leverage so that its interest expense rises by $1 million,then the amount its net income will change is closest to:

• A)-$400,000.
• B)-$600,000.
• C)$400,000.
• D)$600,000.

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Definitions:

Aggressiveness

The quality of being ready or likely to attack or confront; characterized by or resulting from aggression.

Monogamy

A form of relationship in which an individual has only one partner during their lifetime or at any one time (serial monogamy).

Chilly Climate

An environment, often within academic or professional settings, where certain individuals or groups feel unwelcome or marginalized due to subtle forms of discrimination or bias.

Gender Inequality

The unequal treatment or perceptions of individuals based on their gender, resulting in disparities in power, opportunities, and status.